Investing Lessons I Have Learned From TFT
(This is for entertainment purposes only and not financial advice as am NOT an financial advisor; please do your research before investing your money in real world financial instruments)
What do a chess-like video game and personal finance have in common?
A Quick Introduction to TFT:
Teamfight Tactics, or TFT, (which is associated with the MOBA game League of Legends) is a strategy game that is kind of like a randomized chess game. You can buy champions each turn to increase the power of your board by placing them with champions that match with such champions. You can equip them with items. A players board looks like the following:
The financial concepts I learned from the game:
1) The power of interest
One thing I learned from TFT is that interest is very important to grow your savings (or investments).
A feature in the game is that you are given more gold per turn for every 10 gold you already have (up to a maximum of 50)
The same applies in real life financial instruments, for example high yield savings accounts or dividend stocks; except they do not have a maximum, so you can put the amount of money you want to and be able to earn extra income just by having the money invested ( once again, not financial advice because it is not guaranteed that the value you invest will retain its initial value)
The interest mechanic is important for players to understand and understanding this concept is the best way for players to maintain a high amount of gold for important plays, such as “rolling” (refreshing the champion shop, which costs gold many times) to find specific units or leveling up at proper times during the match.
A second thing I realized while playing Teamfight Tactics is the importance of keeping a budget. While interest, along with other mechanics, is important for maintaining a high amount of gold, being able to refrain from spending too much at any given time will naturally allow one to maintain a high amount of gold.
For example, a mistake I find myself doing sometimes is rolling two to three times in hopes I find multiple copies of a certain champion or keep too many champion copies on my bench as opposed to keeping the gold value. By spending 2 - 6 gold per turn for multiple turns and having 5 gold of champions, or more (that are not needed) on my bench as opposed to selling and keeping the gold, over the course of one stage I would not only be missing anywhere from around 10-20 gold, but I would also miss around a few extra gold in interest, which could also help my hit the next tier of interest or get me beyond the max of 50 gold for interest.
Overall, this can get me into a gold deficit in the long term and I could not have enough gold for important rolls or level ups later in the game, making me lose more HP later. Sometimes it is better to sacrifice some HP earlier in the game to have a stronger board position or at least better economy later in the match.
For a real-life example, we are often encouraged, by media and advertisements, to spend money and buy the newest consumer products, such as the newest smartphones, or televisions. However, by simply not buying these products or buying products that cost less, as well as maintaining a budget so you refrain from spending too much money overall, you will have more money in your pocket to put away for the future, for example, for an emergency fund, a new car, or, with a lot of money, buying real estate.
In the same match of TFT, with the first two concepts I was able to reach a VERY high amount of gold saved as you can see in the following:
3) Return on investment
Being able to completely predict a return on investment from a real life investment is very difficult, this is because usually there are many things you might need to account for. If you take the time to learn about what you want to invest in, it can make the decision a lot easier, even if it is not possible to gain perfect knowledge about such an investment opportunity.
Fortunately, in Teamfight tactics, it is much easier to determine a return on your investment in terms of the gold you spend to buy champions or to level. The more knowledge you have about the current meta game, the easier it will be to choose when to spend gold and what to spend it on.
The Metagame is essentially where players learn past the fundamentals of the game and come up with what the best strategies and playstyles are for the game in its current iteration. For example, using the best characters, items, and tactics to allow for the best chance of winning.
In Teamfight Tactics, it is usually more difficult, compared to other kinds of competitive games, to consistently use what best is in the metagame due to the variance present in the game. For example, the shop where you can buy champions are randomized each roll, the items you get throughout the game are pseudo randomized as well. Even the major choices you make for augments ( which are permanent bonuses for your board, one must be chosen out of 3 choices) are usually also pseudo-randomized.
In both investing and in Teamfight Tactics, you need to make the best of the information you have and predict how things can turn out in the future if you make certain choices in what to invest money (or gold) in.
If you are a TFT player, I hope this gave you a different perspective to approaching the game and its mechanics. If not, I hope to have piqued your interest in the game.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2022 Gamerkev3010